<PAGE>
<PAGE>
        U.S. SECURITIES AND EXCHANGE COMMISSION
                Washington, D.C.  20549


                      FORM 10-QSB

(Mark One)

[X]  Quarterly Report under Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the quarterly period ended June 30, 1998

     Transition Report under Section 13 or 15(d) of the
     Exchange Act

     For the transition period from ______ to ______

         Commission File Number:  0-24589

                  BCSB BANKCORP, INC.
---------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its
Charter)


     United States                        52-2108333
-------------------------------          --------------------
(State or Other Jurisdiction of          (I.R.S. Employer  
 Incorporation or Organization)          Identification No.)


4111 E. Joppa Road, Suite 300, Baltimore, Maryland  21236
---------------------------------------------------------
       (Address of Principal Executive Offices)

                    (410) 256-5000
    -----------------------------------------------
    Issuer's Telephone Number, Including Area Code)


                          N/A
---------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)

     Indicate whether the issuer (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act
during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  
Yes      No  X    
   ---     -----

     As of August 7, 1998, the issuer had 6,116,562 shares of
Common Stock issued and outstanding.

<PAGE>
<PAGE>
                       CONTENTS

                                                           PAGE
                                                           ----
PART I.  FINANCIAL INFORMATION
         ---------------------

Item 1.  Financial Statements

         Consolidated Statements of Financial Condition 
            as of June 30, 1998 (unaudited) and 
            September 30, 1997 . . . . . . . . . . . . . . . .3

        Consolidated Statements of Operations for the 
            Nine Months and Three Months Ended June 
            30, 1998 and 1997 (unaudited) . . . . . . . . . . 4

        Consolidated Statements of Cash Flows for the 
            Nine Months Ended June 30, 1998 and 1997 
            (unaudited) . . . . . . . . . . . . . . . . . . . 5

        Notes to Consolidated Financial Statements. . . . . . 8

Item 2.  Management's Discussion and Analysis or Plan 
           of Operation . . . . . . . . . . . . . . . . . . .10


PART II. OTHER INFORMATION
         -----------------

Item 1.  Legal Proceedings. . . . . . . . . . . . . . . . . .13

Item 2.  Changes in Securities and Use of Proceeds. . . . . .13

Item 3.  Defaults Upon Senior Securities. . . . . . . . . . .14

Item 4.  Submission of Matters to a Vote of Security 
           Holders. . . . . . . . . . . . . . . . . . . . . .14

Item 5.  Other Information. . . . . . . . . . . . . . . . . .14

Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . .14


SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . .15
<PAGE>
<PAGE>
                  BCSB BANKCORP, INC.
                  -------------------
                   AND SUBSIDIARIES
                   ----------------
                  Baltimore, Maryland

    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    ----------------------------------------------
<TABLE>
<CAPTION>


                                                JUNE  30,     SEPTEMBER 30,
                                                  1998            1997 
                                               ----------     ------------     
                                              (Unaudited)
                      Assets
                      ------
<S>                                           <C>             <C>
Cash                                          $  3,586,163    $  3,909,276
Interest bearing deposits in other banks        38,929,563       8,206,119
Federal funds sold                              43,274,158       7,102,231
Investment securities, held to maturity         20,860,005      30,323,460
Loans receivable, net                          171,952,999     158,676,168
Mortgage backed securities, held to maturity    35,025,267      37,189,081
Foreclosed Real Estate                             196,488              --
Investment in real estate development 
  and loans to joint venture                         7,855          12,732
Premises and equipment                           2,760,559       2,856,988
Federal Home Loan Bank of Atlanta stock          1,511,900       1,433,200
Accrued interest receivable
 - loans                                           701,538         738,906
 - investments                                     558,209         456,687
 - mortgage backed securities                      208,185         218,686
Prepaid income taxes                                   700         314,384
Intangible assets acquired, net                     31,175          51,209
Other assets                                     1,021,911         249,097
                                              ------------    ------------
     Total assets                             $320,626,675    $251,738,224
                                              ============    ============
         Liabilities and Retained Earnings
         ---------------------------------
Liabilities
-----------
  Deposits                                    $222,781,398    $224,656,081
  Proceeds from subscription offering           67,741,975              --
  Advance payments by borrowers for 
    taxes and insurance                          3,024,692         727,272
  Income taxes payable                              46,344           1,909
  Deferred income taxes                            136,453          83,538
  Payables to disbursing agents                    272,741         120,459
  Other liabilities                                935,760       2,290,516
                                              ------------    ------------
Total liabilities                              294,939,363     227,879,775

Commitments and contingencies

Retained earnings (substantially restricted)    25,687,312      23,858,449
                                              ------------    ------------
Total liabilities and retained earnings       $320,626,675    $251,738,224
                                              ============    ============
</TABLE>

The accompanying notes to the consolidated financial statements 
are an integral part of these statements.
                              3<PAGE>
<PAGE>
                       BCSB BANKCORP, INC.
                       -------------------
                        AND SUBSIDIARIES
                        ----------------
                       Baltimore, Maryland

        CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
        -------------------------------------------------
<TABLE>
<CAPTION>
                                         FOR NINE MONTHS ENDED     FOR THREE MONTHS ENDED
                                               JUNE 30,                  JUNE 30,
                                         ---------------------    ----------------------
                                           1998         1997       1998          1997
                                         -------      -------     -------     ----------
<S>                                      <C>          <C>         <C>         <C>
Interest and fees on loans              $ 9,969,617   $9,891,969  $3,363,408  $3,292,834
Interest on mortgage backed securities    1,768,508    1,834,635     597,746     598,933
Interest and dividends on investment 
  securities                              1,077,975    2,171,537     335,573     714,678
Other interest income                     1,163,690      820,109     472,093     272,430
                                        -----------  -----------  ----------  ----------
     Total interest income               13,979,790   14,718,250   4,768,820   4,878,875

Interest on deposits                      7,314,047    7,832,350   2,429,635   2,491,040
Interest on borrowings - short term           8,917        8,489       4,852       3,828
                                        -----------  -----------  ----------  ----------
Total interest expense                    7,322,964    7,840,839   2,434,487   2,494,868

Net interest income                       6,656,826    6,877,411   2,334,333   2,384,007
Provision (reduction of provision) 
  for losses on loans                        37,981      (17,297)     77,255     (71,611)
                                        -----------  -----------  ----------  ----------
Net interest income after provision 
  (reduction of provision) for losses 
  on loans                                6,618,845    6,894,708   2,257,078   2,455,618

Other Income (Loss)
-------------------
  Gain (loss) on sale of foreclosed 
    real estate                             (17,111)      42,680          --       2,430
  Servicing fee income                        9,263       14,107       3,411       4,408
  Fees and charges on loans                 142,595      153,666      41,051      47,990
  Fees on transaction accounts              117,779      125,226      39,137      42,028
  Rental income                              93,968      110,516      31,313      32,509
  Gain from real estate development 
    and joint venture                            --        4,140          --         262
  Gain on sale of investment securities          --       51,376          --          --
  Gain on sale of branch deposits           339,000           --          --          --
  Miscellaneous income                       72,884       32,450      17,868       2,518
                                        -----------  -----------  ----------  ----------
Net other income (loss)                     758,378      534,161     132,780     132,145

Non-Interest Expenses
---------------------
  Salaries and related expenses           2,411,201    2,513,610     783,440     851,748
  Occupancy expense                         401,098      446,151     158,239     161,339
  Deposit insurance premiums                159,152      233,670      52,020      38,142
  Data processing expense                   319,562      299,604     103,154      93,931
  Property and equipment expenses           283,279      257,212     105,097      87,663
  Professional fees                          90,646       46,829      30,764      15,669
  Advertising                               239,821      139,517     101,241      61,404
  Telephone, postage and office 
    supplies                                231,510      223,281      78,064      71,953
  Amortization of excess of cost 
    over fair value of net assets 
    acquired                                 20,156       20,075       6,777       6,692
  Other expenses                            220,901      232,578      59,936      97,980
                                        -----------  -----------  ----------  ----------
Total non-interest expenses               4,377,326    4,412,527   1,478,732   1,486,521

Income before tax provision               2,999,897    3,016,342     911,126   1,101,242
Income tax provision                      1,171,035    1,210,004     345,992     444,102
                                        -----------  -----------  ----------  ----------
Net income                              $ 1,828,862  $ 1,806,338  $  565,134  $  657,140
                                        ===========  ===========  ==========  ==========
</TABLE>
The accompanying notes to the consolidated financial statements 
are an integral part of these statements.
                              4<PAGE>
<PAGE>
                       BCSB BANKCORP, INC.
                       -------------------
                        AND SUBSIDIARIES
                        ----------------
                       Baltimore, Maryland

        CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
        -------------------------------------------------
<TABLE>
<CAPTION>
                                             
                                                      FOR NINE MONTHS ENDED 
                                                            JUNE 30,
                                                     ---------------------
                                                       1998          1997   
                                                     --------     --------
<S>                                                  <C>          <C>
Operating Activities
   Net Income                                        $ 1,828,862  $ 1,806,338
  Adjustments to Reconcile Net Income to Net
  Cash Provided by Operating Activities
  ------------------------------------------
    Accretion of discount on investments                  30,722      (20,774)
    Gain on sale of investment securities                     --      (51,376)
    Loans originated for sale                           (133,000)    (675,000)
    Proceeds from loans originated for sale              133,000      675,000
    Loan fees deferred                                    39,147      102,359
    Amortization of deferred loan fees                  (258,452)    (308,362)
    Provision (reduction of provision) for 
      losses on loans                                     37,981      (17,297)
    Amortization of premium on mortgage 
      backed securities                                   22,858       39,233
    (Gain) loss on sale of foreclosed real estate         17,111      (40,250)
    Gain from real estate development and 
      joint venture                                           --       (4,140)
    Provision for depreciation                           212,529      200,013
    Decrease in accrued interest receivable 
      on loans                                            37,368       17,945
    (Increase) decrease in accrued interest 
      receivable on investments                         (101,522)     246,499
    Decrease in accrued interest receivable on 
      mortgage backed securities                          10,501       23,234
    Decrease in prepaid income taxes                     313,684      321,334
    Decrease in deferred income taxes                     52,915      514,432
    Amortization of excess of cost over fair 
      value of net assets acquired                        20,156       20,075
    (Increase) decrease in other assets                 (772,814)     253,305
    Gain on sale of branch deposits                     (339,000)          --
    Increase (decrease) in accrued interest 
      payable on deposits                                (87,064)     111,392
    Increase (decrease) in income taxes payable           44,435         (427)
    Decrease in other liabilities and payables 
      to disbursing agents                            (1,202,474)    (839,655)
                                                     -----------  -----------
        Net cash provided by operating activities        (93,057)   2,373,878

</TABLE>
                             5<PAGE>
<PAGE>
                       BCSB BANKCORP, INC.
                       -------------------
                        AND SUBSIDIARIES
                        ----------------
                       Baltimore, Maryland

        CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
        -------------------------------------------------

<TABLE>
<CAPTION>
                                             
                                                   FOR NINE MONTHS ENDED 
                                                            JUNE 30,
                                                --------------------------
                                                   1998             1997   
                                                ----------      ----------
<S>                                             <C>             <C>
Cash Flows from Investing Activities
  Proceeds from maturing interest 
    bearing deposits                            $   198,000     $    792,000
  Purchase of interest bearing deposits         (19,000,000)              --
  Purchases of investment securities - 
    held to maturity                            (22,360,091)     (12,197,590)
  Proceeds from maturities of investment 
    securities - held to maturity                31,792,824       14,304,608
  Proceeds from sale of investment 
    securities - available for sale                      --          101,376
  Longer term loans originated                  (34,221,141)     (22,573,792)
  Principal collected on longer term loans       20,830,161       15,720,613
  Net decrease in short-term loans                  157,118        4,683,464
  Principal collected on mortgage backed 
    securities                                    9,013,179        4,770,972
  Purchases of mortgage backed securities        (6,872,223)      (1,494,999)
  Proceeds from sales of foreclosed real estate       2,000          174,231
  Investment in foreclosed real estate              (77,365)              --
  Net investment and loans to joint ventures          4,877          350,768
  Investment in premises and equipment             (116,100)        (423,831)
  Purchase of Federal Home Loan Bank of 
    Atlanta stock                                   (78,700)        (132,000)
                                               ------------     ------------
    Net cash provided by investing activities   (20,727,461)       4,075,820

Cash Flows from Financing Activities
  Proceeds from sale of branch deposits          (5,827,235)              --
  Proceeds from subscription offer               67,741,975               --
  Net increase in demand deposits, money 
    market, passbook accounts and advances 
    by borrowers for taxes and insurance          4,276,381        1,163,074
  Net increase (decrease) in certificates 
    of deposit                                    2,399,655       (3,811,257)
                                               ------------     ------------
    Net cash provided by financing 
      activities                                 68,590,776       (2,648,183)
                                               ------------     ------------
Increase in cash and cash equivalents            47,770,258        3,801,515
Cash and cash equivalents at beginning 
  of period                                      12,136,626       11,111,733
                                               ------------     ------------
Cash and cash equivalents at end of period     $ 59,906,884     $ 14,913,248
                                               ============     ============
</TABLE>
                              6<PAGE>
<PAGE>
                       BCSB BANKCORP, INC.
                       -------------------
                         AND SUBSIDIARIES
                         ----------------
                       Baltimore, Maryland

        CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
        -------------------------------------------------

<TABLE>
<CAPTION>
                                             
                                                   FOR NINE MONTHS ENDED 
                                                            JUNE 30,
                                                --------------------------
                                                   1998             1997   
                                                ----------      ----------
<S>                                             <C>             <C>
The following is a summary of cash and 
  cash equivalents:
--------------------------------------
    Cash                                         $ 3,586,163     $ 4,663,112
    Interest bearing deposits in other banks      38,929,563       8,290,424
    Federal funds sold                            43,274,158      10,130,712
                                                 -----------     -----------
    Balance of cash items reflected on 
      Statement of Financial Condition            85,789,884      23,084,248

        Less - certificate of deposit with a 
          maturity of more than three months      25,883,000       8,171,000
                                                 -----------     -----------
Cash and cash equivalents reflected on the 
    Statement of Cash Flows                      $59,906,884     $14,913,248
                                                 -----------     -----------
Supplemental Disclosures of Cash Flows 
  Information:
--------------------------------------
    Cash paid during the period for:

    Interest                                     $ 7,412,431     $ 7,732,419
                                                 ===========     ===========
    Income taxes                                 $   760,000     $   367,614
                                                 ===========     ===========
Transfer from loans to real estate acquired 
  through foreclosure                            $   138,234     $        --
                                                 ===========     ===========
         
</TABLE>
The accompanying notes to the consolidated financial statements
 are an integral part of these statements.
                             7<PAGE>
<PAGE>
                  BCSB BANKCORP, INC.
                  -------------------
                   AND SUBSIDIARIES
                   ----------------
                  Baltimore, Maryland


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
------------------------------------------------------

Note 1  Principles of Consolidation
        ---------------------------
        BCSB Bankcorp, Inc. (the "Company") will own 100% of
        Baltimore County Savings Bank, F.S.B. and subsidiaries
        (the "Bank").  The Bank owns 100% of Baltimore County
        Service Corporation and Ebenezer Road, Inc.   Baltimore
        County Service Corporation owns 100% of Route 543, Inc. 
        The accompanying consolidated financial statements
        includes the accounts and transactions of these
        companies on a consolidated basis since the date of
        acquisition.  All intercompany transactions have been
        eliminated in the consolidated financial statements. 
        Ebenezer Road, Inc. sells insurance products.  Baltimore
        County Service Corporation and Route 543, Inc. have
        invested in several joint ventures formed for the
        purpose of developing real estate.  These investments
        have been accounted for on the equity method and
        separate summary statements are not presented since the
        data contained therein is not material in relation to
        the consolidated financial statements. 

Note 2  Basis of Financial Statement Presentation
        -----------------------------------------
        The accompanying consolidated financial statements have
        been prepared in conformity with generally accepted
        accounting principles and in accordance with the
        instructions to Form 10-QSB.  Accordingly, they do not
        include all of the disclosures required by generally
        accepted accounting principles for complete financial
        statements.  In the opinion of management, all
        adjustments (none of which were other than normal
        recurring accruals) necessary for a fair presentation of
        the financial position and results of operations for the
        periods presented have been included.  The financial
        statements of the Company are presented on a
        consolidated basis with those of the Bank, although the
        Company did not own any shares of the Bank and had no
        assets, liabilities, equity or operations at June 30,
        1998.  Therefore, financial statements presented in this
        Form 10-QSB include only the accounts and operations of
        the Bank.  The results for the nine months ended June
        30, 1998 are not necessarily indicative of the results
        of operations that may be expected for the year ended
        September 30, 1998.  For further information, refer to
        the consolidated financial statements and footnotes
        thereto included in the Prospectus of the Company dated
        May 14, 1998.
                              8
<PAGE>
<PAGE>
                  BCSB BANKCORP, INC.
                  -------------------
                   AND SUBSIDIARIES
                   ----------------
                  Baltimore, Maryland

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
------------------------------------------------------

Note 3  Retained Earnings
        -----------------
        The following table sets forth the Bank's capital
        position at June 30, 1998.
<TABLE>
<CAPTION>

                                                                              To Be Well
                                                                            Capitalized Under
                                                      For Capital            Prompt Corrective
                                   Actual          Adequacy Purposes        Action Provision
                            ------------------   --------------------       -----------------
                            Amount        %      Amount           %         Amount        %   
                            ------      -----    ------         -----       ------      -----
<S>                         <C>         <C>      <C>            <C>         <C>          <C>
Tangible (1)                $24,725,404  7.71%  $ 4,808,815     1.50%        N/A         N/A
Tier 1 capital (2)           24,725,404 15.95%          N/A      N/A       $ 9,301,122   6.00%
Core (Leverage) (1)          24,725,404  7.71%    9,617,629     3.00%       16,029,382   5.00%
Risk-weighted (2)            25,699,732 16.58%   12,401,497     8.00%       15,501,871  10.00%
<FN>
____________
(1)  To adjusted total assets.
(2)  To risk-weighted assets.
</FN>
</TABLE>

                                    Current Requirements
                                    --------------------
Retained earnings                       $ 25,687,312
  Less: Non-allowable items:
    Intangible assets acquired, net          (31,175)
    Investment in and advances to
      non-includable subsidiaries           (930,733)
                                        ------------
  Tangible and core capital               24,725,404
  General valuation allowance                974,328
                                        ------------
  Risk-based capital                    $ 25,699,732
                                        ============

  Total assets                          $320,626,675
    Less: Non-allowable items:
  Intangible assets acquired, net            (31,175)
  Assets of non-includable 
    subsidiaries not eliminated 
    for regulatory purposes                   (7,855)
                                        ------------
  Tangible and adjusted 
    tangible assets                     $320,587,645
                                        ============
  Risk-weighted assets                  $155,018,708
                                        ============

                              9<PAGE>
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
          OPERATION 

FORWARD-LOOKING STATEMENTS

When used in this Form 10-QSB, the words or phrases "will
likely result," "are expected to," "will continue," "is
anticipated," "estimate," "project" or similar expressions are
intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. 
Such statements are subject to certain risks and uncertainties
including changes in economic conditions in the Company's market
area, changes in policies by regulatory agencies, fluctuations
in interest rates, demand for loans in the Company's market
area, and competition that could cause actual results to differ
materially from historical earnings and those presently
anticipated or projected.  The Company wishes to caution readers
not to place undue reliance on any such forward-looking
statements, which speak only as of the date made.  The Company
wishes to advise readers that the factors listed above could
affect the Company's financial performance and could cause the
Company's actual results for future periods to differ materially
from any opinions or statements expressed with respect to future
periods in any current statements.

The Company does not undertake, and specifically disclaims
any obligation, to publicly release the result of any revisions
which may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.

YEAR 2000 COMPUTER PROGRAM COMPLIANCE

A great deal of information has been disseminated about
the global computer crash that may occur in the year 2000.  Many
computer programs that can only distinguish the final two digits
of the year entered (a common programming practice in earlier
years) are expected to read entries for the year 2000 as the
year 1900 and compute payment, interest or delinquency based on
the wrong date or are expected to be unable to compute payment,
interest or delinquency.  Rapid and accurate data processing is
essential to the operations of the Bank.  Data processing is
also essential to most other financial institutions and many
other companies.

All of the material data processing of the Bank that could
be affected by this problem is provided by a third party service
bureau.  Management closely monitors the progress of the service
bureau in resolving this potential problem and reports the
status of the service bureau's progress to the Board of
Directors on a quarterly basis.  The service bureau has advised
the Bank that it expects to resolve this potential problem
before the year 2000 by completing all implementation procedures
by December 31, 1998 to allow for testing to occur in 1999. 
However, if the service bureau is unable to resolve this
potential problem in time, the Bank would seek to retain a
replacement service bureau and would likely experience
significant data processing delays, mistakes or failures.  These
delays, mistakes or failures could have a significant adverse
impact on the financial condition and results of operation of
the Bank.

The OTS has advised the Bank that it needs to take actions to
improve its preparedness for potential Year 2000 problems. 
Specifically, the OTS has advised the Bank that it must prepare
and adopt a written plan detailing the procedures to be followed
by the Board of Directors and management to identify and solve
potential problems and monitor the progress made by the Bank and
its service bureau to accomplish the procedures and actions
required by the plan to be taken.  The plan must also contain
contingency plans in the event the Bank's service bureau is
unable to take necessary corrective actions.  In addition, the
Board of Directors will be required to monitor effective
implementation of the plan.  The Bank has advised the OTS that
it intends to implement the mandated actions, and has adopted a
written plan for Year 2000 preparedness, which plan has been
provided to the OTS for their review.  The OTS conditioned its
approval of the Bank's proposed reorganization (the
"Reorganization") as a wholly owned subsidiary of BCSB Bankcorp,
Inc. (the "Company"), which in turn will be a majority-owned
subsidiary of Baltimore County Savings Bank, M.H.C., and the
Company's application to acquire control of the Bank, on the
implementation of the specified actions.  The Bank has been
advised that it has complied with the conditions set forth in
the OTS approval of the reorganization.

                              10<PAGE>
<PAGE>
RECENT DEVELOPMENTS

On June 12, 1998, the Bank announced an expansion in the
Bank's Harford County Branch network.  Agreements have been
reached to open three additional offices in Abingdon, Forest
Hill and Hickory.

The Abingdon office is to be located in the Constant
Friendship Business Park opposite Wal-Mart.  The Forest Hill
office will be located at the intersection of Route 24 and Route
23 near Klein's Grocery Store.  Both of these offices are on
schedule to open during the first half of 1999.  The Bank's
Hickory location will be located in a new retail shopping area,
planned near the intersection of Route 1 and Route 543.  No firm
date has been set for the Hickory opening.

All three offices will be full service facilities, and
will include ATMs and drive-up lanes.  The new offices will
complement the Bank's existing Bel Air office, which was
recently relocated to a free standing/full service facility
located in the Bel Air Plaza Shopping Center.  The additional
offices will help the Bank further develop its lending
operations and provide full service banking to new market areas.

In a related branch development, the Bank announced the
closure of its 6368 York Road office.  It will be consolidated
into an expanded facility in Timonium, Maryland.  The new
Timonium facility should be open sometime in 1999 and will
provide full service banking services including drive-up lanes
and ATM access to the Bank's expanding ATM network. 

The expenses associated with establishing and improving
the branch offices will reduce the Bank's net income in the
short term.

COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 1998 AND SEPTEMBER
30, 1997

During the nine months ended June 30, 1998, the Bank's
assets increased by $68.9 million, or 27.4%, from $251.7 million
at September 30, 1997 to $320.6 million at June 30, 1998.  Most
of the increase is attributable to the $67.7 million received
from the Bank's subscription offering.  The funds received were
invested in short-term investments to await the closing of the
initial public offering.  Thus, most of the increase in assets
was attributable to an increase in cash, interest-bearing
deposits in other banks and federal funds sold, which increased
by $66.6 million, or 346.4%, from $19.2 million at September 30,
1997 to $85.8 million at March 31, 1998. The Bank invested
proceeds from maturing investment securities in federal funds
sold in order to have funds available to fund loans expected to
close during the quarter ending June 30, 1998.  The Bank's
investment securities decreased by $9.5 million, or 31.2%, from
$30.3 million at September 30, 1997 to $20.9 million at June 30,
1998, as described above.  Loans receivable, net increased by
$13.3 million, or 8.4%, from $158.7 million at September 30,
1997 to $172.0 million at June 30, 1998.  The increase in the
Bank's loan portfolio was due primarily to increased
originations of single-family residential mortgage loans as a
result of increased loan demand.  The Bank's deposits were
$224.7 million at September 30, 1997 and $222.8 million at June
30, 1998.

COMPARISON OF OPERATING RESULTS FOR THE THREE AND NINE MONTHS
ENDED JUNE 30, 1998 AND JUNE 30, 1997

Net Income.  Net income decreased by $92,000, from
$657,000 for the three months ended June 30, 1997 to $565,000
for the three months ended June 30, 1998.  The decrease in net
income was primarily attributable to a $110,000 reduction in
interest income during the three months ended June 30, 1998, as
compared to the three months ended June 30, 1997.  Net income
increased $23,000, and was $1.8 million for the nine months
ended June 30, 1998 and June 30, 1997.  The increase in net
income during the nine months ended  June 30, 1998 was due
primarily to a $224,000 increase in other income, offset by a
$221,000 decrease in net interest income and a $35,000 decrease
in non interest expenses.  There was a $38,000 provision for
loan losses in the nine months ended June 30, 1998 as opposed to
a $17,000 reduction of the provision for loan losses in the nine
months ended June 30, 1997.
                             11<PAGE>
<PAGE>
Net Interest Income.  Net interest income was $2.3 million
for the three months ended June 30, 1998, compared to $2.4
million for the three months ended June 30, 1997, representing a
decrease of $50,000, or 2.1%.  Net interest income was $6.7
million for the nine months ended June 30, 1998, as compared to
$6.9 million for the nine months ended June 30, 1997,
representing a decrease of $221,000, or 3.2%.  The decreases in
net interest income were the result of decreases in the Bank's
interest rate spread during the respective periods. The Bank's
interest rate spread decreased as the yield on interest-earning
assets, primarily loans receivable, decreased during a
decreasing market interest rate environment while competitive
pressures did not permit the Bank to lower deposit rates as
quickly.

Interest Income.  Interest income decreased by $110,000,
or 2.3%, from $4.9 million for the three months ended June 30,
1997 to $4.8 million for the three months ended June 30, 1998. 
This decrease was due primarily to a decrease in the yield on
interest-earning assets, despite an increase in loans made. 
Interest income decreased by $738,000, or 5.0%, from $14.7
million for the nine months ended June 30, 1997 to $14.0 million
for the nine months ended June 30, 1998.  This decrease was due
primarily to a decrease in the yield on interest-earning assets.

Interest Expense.  Interest expense, which consists almost
entirely of interest on deposits, decreased by $60,000, or 2.4%,
from $2.5 million for the three months ended June 30, 1997 to
$2.4 million for the three months ended June 30, 1998.  This
decrease was due primarily to a $5.9 million, or 2.6%, decrease
in the balance of deposits from $228.7 million for June 30, 1997
to $222.8 million June 30, 1998, primarily due to a decrease in
the balances of passbook savings accounts and certificates of
deposits as a result of the sale of the deposits of the Severna
Park branch office in October 1997.  Likewise, interest expense
decreased by $518,000, or 6.6%, from $7.8 million for the nine
months ended June 30, 1997 to $7.3 million for the nine months
ended June 30, 1998.

Provision for Loan Losses.  The Bank established
provisions for loan losses of $77,000 for the three months ended
June 30, 1998 and reduced its provision for loan losses by
$72,000 during the three months ended June 30, 1997.  The Bank
established provisions for loan losses of $38,000 for the nine
months ended June 30, 1998 and reduced its provisions for loan
losses by $17,000 during the nine months ended June 30, 1997. 
In establishing such provisions, management considered the level
of the Bank's non-performing loans which were $900,000 and $1.8
million at June 30, 1998 and 1997, respectively, and the levels
of the Bank's net charge-offs, which totaled $2,000, $64,000,
$41,000 and $202,000 during the three months ended June 30, 1998
and 1997 and the nine months ended June 30, 1998 and 1997,
respectively.  

Other Income.  Other income was $132,000 for the three
months ended June 30, 1997 and for the three months ended June
30, 1998.  Total other income increased by $224,000, or 41.9%,
from $534,000 for the nine months ended June 30, 1997 to
$758,000 for the nine months ended June 30, 1998.  The increase
in other income for the nine months ended June 30, 1998 was
attributable to a $339,000 gain on sale of branch deposits, as
the Bank sold the deposits of its Severna Park branch in October
1997.  In connection with such sale, the Bank sold deposits
totaling $6.2 million and recognized a gain of $339,000
representing a premium paid by the buyer on the deposits sold.  
Such increase was offset, in part, by the absence during the
nine months ended June 30, 1998 of a gain on sale of investment
securities; the Bank earned a $51,000 gain on sale of investment
securities during the nine months ended June 30, 1997.

Non-interest Expenses.  Total non-interest expenses were
$1.5 million for the three months ended June 30, 1998 and June
30, 1997.  Total non-interest expenses were $4.4 million for the
nine months ended June 30, 1997 and 1998.  For the three and
nine month periods, reduced salaries and related expense and
reduced occupancy expense attributable to closing the Severna
Park branch office were offset by increased advertising
expenses, as the Bank sought to increase both loan and deposit
market share.

Management believes that salaries and related expense will
increase in future periods as a result of the adoption of the
ESOP and other stock benefit plans, if adopted.  Furthermore,
the Bank expects other expenses will increase as a result of the
costs associated with being a public institution.  Further, the
Company expects to incur

                             12<PAGE>
<PAGE>
an expense, currently estimated to be $457,000, net of taxes,
during the third quarter of calendar year 1998 in connection
with the establishment of a charitable foundation in connection
with the Bank's mutual holding company reorganization.

Income Taxes.  The Bank's income tax expense was $444,000
and $346,000 for the three months ended June 30, 1997 and 1998,
respectively, and $1,210,000 and $1,171,000 for the nine months
ended June 30, 1997 and 1998, respectively.  The Bank's
effective tax rates were 40.3%, 38.0%, 40.1% and 39.0% for the
three months ended June 30, 1997 and 1998 and the nine months
ended June 30, 1997 and 1998, respectively.  

LIQUIDITY AND CAPITAL RESOURCES

The Bank's liquidity and capital resources at June 30,
1998 increased from March 31, 1997 primarily due to the bank's
subscription offering being in progress.  The Bank anticipates
that it will have sufficient funds available to meet commitments
outstanding at June 30, 1998 to originate loans.  As of June 30,
1998, the Bank's ratios of tangible capital and core capital to
adjusted total assets were 7.7%, as compared to the required
levels of 1.5% and 3.0%, respectively.  The risk-based capital
ratio at that date was 16.6%, as compared to the requirement of
8.0%. 

PART II.  OTHER INFORMATION

     ITEM 1.   LEGAL PROCEEDINGS

     None.

     ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS

     On July 8, 1998, the Company issued 3,754,960 shares of
     its common stock, par value $.01 per share (the "Common
     Stock"), to Baltimore County Savings Bank M.H.C. (the
     "MHC") pursuant to the terms of the Plan of Stock Issuance
     adopted by the Bank on October 22, 1997 and subsequently
     amended.  The shares were issued in connection with the
     Bank's reorganization into the stock form of ownership as
     a wholly owned subsidiary of the Company.  As part of the
     reorganization, the Company sold 2,286,602 shares of
     Common Stock to the public, donated 75,000 shares of
     Common Stock to a charitable foundation and issued the
     remaining outstanding shares of Common Stock, aggregating
     3,754,960 shares, to the MHC.  The shares issued to the
     MHC were not required to be registered under the
     Securities Act of 1933, as amended (the "Act"), because
     the issuance did not involve a sale, offer to sell or
     offer for sale, for value, as such terms are defined in
     Section 2(3) of the Act.
          
     The following information is provided with respect to the
     Company's sale of shares of Common Stock pursuant to its
     Registration Statement on Form SB-2, Commission File No.
     333-44831, declared effective by the Securities and
     Exchange Commission ("SEC") on May 14, 1998.  The offering
     commenced on May 21, 1998 and terminated on June 18, 1998. 
     The Company retained Trident Securities, Inc. ("Trident
     Securities"), a broker-dealer registered with the SEC and
     a member of the National Association of Securities
     Dealers, Inc., to provide financial and sales assistance
     in connection with the offering.  Trident Securities
     agreed to use its best efforts to assist the Company with
     the sale of the Common Stock in the offering.  Trident
     Securities was not obligated to take or purchase any
     shares of Common Stock in the offering.  In the offering,
     the Company registered 2,424,478 shares of Common Stock
     with an aggregate offering price of $24,244,780, all for
     the account of the Company.  On July 8, 1998, the Company
     sold a total of 2,286,602 shares of Common Stock for
     aggregate consideration of $22,866,020 and donated 75,000
     shares of Common Stock to a charitable foundation named
     Baltimore County Savings Bank Foundation, Inc.

                               13
<PAGE>          
     The following table sets forth expenses incurred or
     estimated to have been incurred by the Company in
     connection with the offering.  An asterisk indicates that
     the amount is an estimate.  All of such amounts were paid
     to persons or entities who were not officers, directors or
     10% stockholders of the Company or their affiliates or an
     affiliate of the Company.
     
     Expenses                                    Amount
     --------                                    ------
     Underwriting discounts and commissions      $314,481
     Finders' fees                                     --
     Expenses paid to or for underwriters              --
     Other expenses                               571,979
                                                 --------
     Total expenses                              $886,460
                                                 ========

     After deducting expenses, the net offering proceeds are
     estimated to be $21,979,560.

     The following table sets forth the purposes for which the
     net offering proceeds were used and the amount of the net
     offering proceeds used for each purpose.  An asterisk
     indicates that the amount is an estimate.  All of such
     amounts were paid to persons or entities who were not
     officers, directors or 10% stockholders of the Company of
     their affiliates or an affiliate of the Company.
          
     Use of Proceeds                              Amount
     ---------------                              ------
          
     Construction of plant, building and
       facilities                               $ 2,750,000 (1)
     Purchase and installation of machinery
       and equipment                                500,000 (1)
     Working capital                              9,160,500
     Investment in subsidiary                     7,739,780
     Loan to Employee Stock Ownership Plan        1,829,280
                                                -----------
                                                $21,979,560      
                                                ===========

     (1)  Such amount will be contributed to the Company's
          wholly owned subsidiary, the Bank, which will use
          the indicated portion of the net offering proceeds
          for the indicated purpose.
                      
     The uses of proceeds described above do not represent a
     material change in the use of proceeds described in the
     prospectus.                                                 

     ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

     None.

     ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY-
               HOLDERS

     None.

     ITEM 5.   OTHER INFORMATION

     None.

     ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     A Form 8-K was filed on June 12, 1998 reporting under Item
     5 an announcement of plans to open three branch offices in
     Abingdon, Forest Hill and Hickory, Maryland.  In addition,
     the Bank announced the closure of its 6368 York Road
     office, which will be consolidated into a new expanded
     facility in Timonium, Maryland.

     (a)  The following exhibit is filed herewith:

          Exhibit 27     Financial Data Schedule
                            14<PAGE>
<PAGE>
                      SIGNATURES



     Pursuant to the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                              BCSB BANKCORP, INC.



Date:  August 11, 1998       /s/ Michael J. Dietz                
                             ---------------------------
                             Michael J. Dietz
                             President
                             (Principal Executive Officer)



Date:  August 11, 1998       /s/ Gary C. Loraditch
                             -----------------------------
                             Gary C. Loraditch
                             Vice President, Secretary and
                                Treasurer
                             (Principal Financial and
                             Accounting Officer)

                             15